BetMGM swings to first-quarter profit in e-betting surge
U.S. sports-betting service BetMGM, a joint venture between MGM Resorts and Entain, posted core profit for the first quarter on Monday, supported by strong growth in its iGaming and online sports divisions.
Shares of Entain, which owns the Ladbrokes and Coral brands, rose as much as 10.1 per cent to 647.6 pence. MGM shares were up 1.8 per cent at 32.2 cents.
BetMGM has been pushing to grow its online presence and capitalise on the booming e-betting market amid stiff competition.
Its online sports division reported a 68 per cent revenue growth despite unfavourable sports outcomes during key moments in the quarter.
"We're focusing on building as big a contribution base from that sports business as possible. And the key inflection point is positivity, which we've delivered in the first quarter of this year," CEO Adam Greenblatt said in an analyst call.
BetMGM said its first-quarter results increased the company's confidence in exceeding full-year guidance, but maintained a cautious tone.
It reaffirmed its expectations to be EBITDA positive and deliver net revenue of $2.4 billion to $2.5 billion in fiscal 2025.
"It is reassuring to see good revenue growth in both iCasino and Sport and there appears to be no evidence of a weaker U.S. consumer," Davy Research analysts said in a note.
BetMGM reported a core profit of $22 million for the three months ended March 31, compared with a loss of $132 million a year earlier.
